US Appeals Court Temporarily Halts Argentina's 51% Stake in YPF Transfer Amid $16.1B Judgment

A US appeals court temporarily halted Argentina's obligation to transfer its 51% stake in YPF to comply with a $16.1bn judgment. Argentina has until July 22 to respond, and the case will be reviewed by the next available panel of three judges. The dispute arose from Argentina's 2012 expropriation of Repsol's stake in YPF without making a public offer to Petersen and Eton Park, minority shareholders.

A U.S. appeals court has temporarily halted Argentina's obligation to transfer its 51% stake in YPF, the state-run energy company, to comply with a $16.1 billion judgment. The decision, handed down by the 2nd U.S. Circuit Court of Appeals in Manhattan, gives Argentina until July 22 to respond to the order [4].

The ruling comes as a setback for Argentina, which has been grappling with the long-running dispute over the expropriation of YPF shares from Spanish oil giant Repsol in 2012. At the time, Argentina seized 51% of the company without making a public offer to minority shareholders Petersen and Eton Park, who later sued the country [2].

In September 2023, a U.S. district court ordered Argentina to sell its stake in YPF to satisfy the debt. However, Argentina has been unable to comply due to its economic constraints and legal prohibitions against transferring expropriated shares without congressional authorization [1].

The current administration of President Javier Milei has appealed the decision but has not yet ruled on the matter. Argentina's Treasury Attorney General's Office has requested a stay of the order, arguing that irreparable harm would result from the transfer of YPF shares [1].

The temporary halt in the transfer of YPF shares comes as a relief for Argentina, which has been facing significant economic challenges. The country has been navigating a heavy debt burden, soaring inflation, and dwindling foreign currency reserves [2].

The dispute has sparked a bitter political dispute in Argentina, with the libertarian president Javier Milei accusing the governor of the province of Buenos Aires, Axel Kicillof, of being responsible for the adverse ruling. Kicillof, in turn, has accused Milei of having ties to Burford Capital, the litigation funder representing the minority shareholders [1].

The case is expected to be reviewed by the next available panel of three judges, with a decision pending on Argentina's request for a longer stay. If Argentina loses its appeal, it may seek relief from higher courts, including the U.S. Supreme Court [4].

References:
[1] https://english.elpais.com/economy-and-business/2025-07-15/us-court-gives-argentina-three-more-days-to-surrender-its-ypf-shares.html
[2] https://batimes.com.ar/news/economy/argentina-appeals-us-court-order-to-hand-over-ypf-shares.phtml
[3] https://news.bloomberglaw.com/bankruptcy-law/us-court-temporarily-blocks-handover-of-argentinas-ypf-shares
[4] https://finance.yahoo.com/news/us-appeals-court-puts-argentinas-160948599.html